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The impact of Integrated Tariff Systems on public transport demand: Evidence from Italy

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  • Abrate, Graziano
  • Piacenza, Massimiliano
  • Vannoni, Davide

Abstract

The increasing problems of pollution and traffic congestion require the definition of a model of sustainable mobility -- in particular, in large, urban areas. An indirect control on these negative externalities associated with private transport may be pursued by means of policies aimed at improving quality and accessibility of public transit networks. To that end, one popular option is the design of an Integrated Tariff System (ITS): the crucial question remains whether such a policy can be effective in raising the number of public transport users. In this study, we use a twelve-year panel of 69 Italian public transit providers (with or without ITS) and estimate alternative specifications of the demand function. Results show that the impact due to ITS introduction is, on average, moderate. Results also highlight the importance of taking into account the specific features of ITS, such as its validity over an extended network, the availability of a single ticket option, and the application of zonal pricing schemes.

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  • Abrate, Graziano & Piacenza, Massimiliano & Vannoni, Davide, 2009. "The impact of Integrated Tariff Systems on public transport demand: Evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 120-127, March.
    • Handle: RePEc:eee:regeco:v:39:y:2009:i:2:p:120-127
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    2. Alessandro Vitale & Giuseppe Guido & Daniele Rogano, 2016. "A smartphone based DSS platform for assessing transit service attributes," Public Transport, Springer, vol. 8(2), pages 315-340, September.
    3. Garrone, Paola & Grilli, Luca, 2010. "Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation," Energy Policy, Elsevier, vol. 38(10), pages 5600-5613, October.
    4. Skuzinski, Thomas & Weinreich, David & Hernandez, Carolina Velandia, 2023. "Exploring the link between regional transportation governance and outcomes: A novel measure of polycentricity in metropolitan public transportation systems," Transport Policy, Elsevier, vol. 133(C), pages 168-175.
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    6. Miroslav PLEVNÝ, 2017. "Influence of the Fare Funding Type on Public Transport Demand – Case of Pilsen," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2017(28), pages 45-66, June.
    7. Kaushik Deb & Massimo Filippini, 2013. "Public Bus Transport Demand Elasticities in India," Journal of Transport Economics and Policy, University of Bath, vol. 47(3), pages 419-436, September.
    8. Anciaes, Paulo & Metcalfe, Paul & Heywood, Chris & Sheldon, Rob, 2019. "The impact of fare complexity on rail demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 224-238.
    9. Redman, Lauren & Friman, Margareta & Gärling, Tommy & Hartig, Terry, 2013. "Quality attributes of public transport that attract car users: A research review," Transport Policy, Elsevier, vol. 25(C), pages 119-127.
    10. Sharaby, Nir & Shiftan, Yoram, 2012. "The impact of fare integration on travel behavior and transit ridership," Transport Policy, Elsevier, vol. 21(C), pages 63-70.
    11. Ajeni Ari & Maria Chiara Leva & Lorraine D’Arcy & Mary Kinahan, 2022. "Fairness and Inclusion for Users of Surface Transport—An Exploratory Thematic Study for Irish Users," Sustainability, MDPI, vol. 14(11), pages 1-18, May.
    12. Cavallaro, Federico & Dianin, Alberto, 2020. "Efficiency of public transport for cross-border commuting: An accessibility-based analysis in Central Europe," Journal of Transport Geography, Elsevier, vol. 89(C).
    13. Santos, Georgina & Behrendt, Hannah & Teytelboym, Alexander, 2010. "Part II: Policy instruments for sustainable road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 46-91.
    14. Hrelja, Robert & Khan, Jamil & Pettersson, Fredrik, 2020. "How to create efficient public transport systems? A systematic review of critical problems and approaches for addressing the problems," Transport Policy, Elsevier, vol. 98(C), pages 186-196.
    15. Yaman, Firat & Offiaeli, Kingsley, 2022. "Is the price elasticity of demand asymmetric? Evidence from public transport demand," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 318-335.
    16. Chowdhury, Subeh & Hadas, Yuval & Gonzalez, Vicente A. & Schot, Bart, 2018. "Public transport users' and policy makers' perceptions of integrated public transport systems," Transport Policy, Elsevier, vol. 61(C), pages 75-83.
    17. Shibayama, Takeru & Emberger, Günter, 2020. "New mobility services: Taxonomy, innovation and the role of ICTs," Transport Policy, Elsevier, vol. 98(C), pages 79-90.
    18. Zi-jia Wang & Feng Chen & Bo Wang & Jian-ling Huang, 2018. "Passengers’ response to transit fare change: an ex post appraisal using smart card data," Transportation, Springer, vol. 45(5), pages 1559-1578, September.
    19. Hannes Wallimann & Kevin Blattler & Widar von Arx, 2021. "Do price reductions attract customers in urban public transport? A synthetic control approach," Papers 2111.14613, arXiv.org, revised Mar 2022.
    20. Matas, Anna & Raymond, Josep-Lluis & Ruiz, Adriana, 2020. "Economic and distributional effects of different fare schemes: Evidence from the Metropolitan Region of Barcelona," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 1-14.
    21. Takahashi, Takaaki, 2017. "Economic analysis of tariff integration in public transport," Research in Transportation Economics, Elsevier, vol. 66(C), pages 26-35.

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